Sec. 3. 22 MRSA §3187-A is enacted to read:

§3187-A.__Intermediate care facility efficiency incentive

An intermediate care facility for persons with mental retardation that limits its variable costs during the fiscal year to less than the amounts paid through the variable cost component of the final prospective rate is entitled to retain an incentive payment equal to 75% of the savings represented by the difference between the department's appropriate share of the intermediate care facility's allowable expenses and the amount paid by the department.__The amount of the incentive payment is determined upon final audit and is calculated in the determination of any overpayments made by the department.

Sec. 4. PL 2003, c. 20, Pt. K, §17 is amended to read:

Sec. 5. Suspension of inflation and return on equity payments to nursing facilities. Notwithstanding any other provisions of law, the Department of Human Services may not include in its reimbursement of nursing facilities under the MaineCare program any amounts designed to provide for inflation adjustments or a return on equity capital for state fiscal years year 2003-04 and 2004-05.

Sec. 6. Appropriations and allocations. The following appropriations and allocations are made.

HUMAN SERVICES, DEPARTMENT OF

Medical Care - Payments to Providers 0147

Initiative: Restores MaineCare reimbursement reduced by Public Law 2003, chapter 20, Part B, section 1 for private nonmedical institution bed-hold days. Reimbursement for bed-hold days will be restored to 100% from 75% of a facility's per diem rate. This change would apply only to those facilities categorized as medical and remedial.

General Fund 2003-04 2004-05

All Other $0 $200,000

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General Fund Total $0 $200,000

Federal Expenditures Fund 2003-04 2004-05

All Other $0 $388,408

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